The TIAA Institute and GFLEC have tracked American financial knowledge every year for the past decade with the same 28-question survey. In 2026, on the 10th anniversary of the TIAA Institute–GFLEC Personal Finance Index, they introduced something new: the P-Fin 8. It’s an eight-question financial literacy quiz that’s designed to mirror the full test.
Researchers picked the eight questions that, taken together, best mirror the full 28, one from each domain. The report says the two scores move almost in lockstep. The national average on the P-Fin 8 was 46% correct, and the full 28-question exam averaged 47%.
The annual P-Fin Index found that financial literacy in America is at a 10-year low. Take the quiz below and see where you land.
Take the 8-Question Financial Literacy Quiz Before You See the Answers
The P-Fin 8 includes one question from each of eight financial knowledge domains: earning, consuming, saving, investing, borrowing, insuring, comprehending risk, and finding reliable guidance. Read each question and commit to an answer before you scroll to the results.
Question 1: Earning
Mark’s salary has increased over the past two years. What would be a plausible reason for this?
- A. The number of workers with Mark’s skills increased where he lives and works
- B. New technology reduced the demand for workers with Mark’s skills
- C. Mark completed several training courses at a local college
Question 2: Consuming
A household budget cannot be used for which of the following?
- A. To track household financial assets
- B. To plan for necessary household expenses
- C. To plan household discretionary spending
Question 3: Saving
Akiko has $1,000 in savings that earns a 2% rate of return over the course of the year. The inflation rate during the year is 3%. Which statement is true?
- A. She can afford to buy fewer things at the end of the year
- B. She can afford to buy more things at the end of the year
- C. It’s not clear whether she can afford to buy more things or fewer things at the end of the year
Question 4: Investing
Which statement about investing is correct?
- A. Investing in the stock of a single company is typically safer than investing in a mutual fund that holds shares of many companies in multiple industries
- B. Investing in a mutual fund that holds shares of many companies in multiple industries is typically safer than investing in the stock of a single company
- C. Investing in the stock of a single company and investing in a mutual fund that holds shares of many companies in multiple industries are typically equally safe
Question 5: Borrowing
José owes $1,000 on a loan that has an interest rate of 20% per year compounded annually. If he makes no payments on the loan, how many years will it take for the amount he owes to double?
- A. Less than 5 years
- B. 5 to 10 years
- C. More than 10 years
Question 6: Insuring
Katherine is a single 25-year-old worker who is in good health. What type of insurance coverage is she most likely to need in the near term?
- A. Life insurance
- B. Disability insurance
- C. Long-term care insurance
Question 7: Comprehending Risk
Lottery A pays a prize of $200 and the chance of winning is 5%. Lottery B pays a prize of $90,000 and the chance of winning is 0.01%. Expected winnings are greater in which lottery?
- A. Lottery A
- B. Lottery B
- C. They are equal
Question 8: Finding Reliable Guidance
Which of the following appears to be inappropriate investment advice for the respective individual?
- A. A stock index fund to a 30-year-old worker saving for retirement
- B. A bond fund to a 60-year-old worker for some of her retirement savings
- C. A stock fund that invests in small start-up businesses to a 75-year-old retiree
Ready to check your answers? Scroll down.
How Did Americans Score on Each of the Eight Questions?
Six in 10 Americans answered four or fewer questions on this financial literacy quiz. One in three couldn’t get past two right answers. Only 15% scored seven or eight out of eight.
| Questions Answered Correctly (of 8) | Share of U.S. Adults |
|---|---|
| 7 or 8 | 15% |
| 5 or 6 | 24% |
| 3 or 4 | 24% |
| 2 or fewer | 36% |
Source: TIAA Institute–GFLEC Personal Finance Index (2026). Note: Percentages sum to 99% due to rounding in the original report dataset.
| Question | Domain | Correct Answer | National Score |
|---|---|---|---|
| Mark’s salary increase | Earning | C: Training courses built his skills and earning potential | 56% |
| Household budget limits | Consuming | A: Budgets plan spending; they don’t track financial assets | 49% |
| Akiko’s purchasing power | Saving | A: Inflation outruns her 2% return; she buys less | 48% |
| Mutual fund vs. single stock | Investing | B: A diversified fund is safer than a single stock | 54% |
| José’s debt doubling time | Borrowing | A: Less than 5 years | 40% |
| Katherine’s coverage need | Insuring | B: Disability insurance | 27% |
| Lottery expected value | Comprehending Risk | A: Lottery A ($10 expected value) beats Lottery B ($9) | 46% |
| Investment advice mismatch | Finding Reliable Guidance | C: Start-up stocks are inappropriate for a 75-year-old retiree | 46% |
Source: 2026 TIAA Institute–GFLEC Personal Finance Index.
The Borrowing Question
At 20% annual compound interest, a $1,000 debt doubles in about 4 years. Only 40% of respondents got this right, and 30% said they didn’t know. Credit cards often carry interest rates of 20% or higher, so misreading that math by even a few years costs money.
Only 27% Got the Insurance Question Right
Disability insurance was the right answer to Question 6, and only 27% of respondents chose it. Nearly half (46%) picked life insurance or long-term care insurance instead, and 26% said they didn’t know. A young, healthy single worker’s biggest financial risk is an illness or injury that stops her income. That’s what disability insurance covers.
The three insurance types in Question 6 cover different phases of financial life. Disability insurance protects your income while you’re working. Long-term care insurance protects your savings in retirement. Medicare covers healthcare in retirement, but you still pay premiums and deductibles, and it doesn’t cover most long-term care.
Retire before 65, and you’ll also need to cover health insurance until Medicare starts.
Gen Z Averaged 38% Correct, the Lowest Score of Any Generation
The P-Fin 8 reproduces the generational gap documented in the full 28-question study. Gen Z averaged 38% correct. Baby boomers averaged 52%. The national average is 46%.
| Generation | P-Fin 8 Average | Answered 2 or Fewer Correctly |
|---|---|---|
| Baby Boomers | 52% | 27% |
| Gen X | 47% | 35% |
| Millennials | 45% | 38% |
| Silent Generation | 44% | 37% |
| Gen Z | 38% | 48% |
Source: 2026 TIAA Institute–GFLEC Personal Finance Index.
Almost half of Gen Z respondents answered two or fewer questions correctly. Financial decisions made at that age, under weak knowledge, shape the savings path for decades.
Baby boomers lead every generation, but 27% of them still answered two or fewer correctly.
Men averaged 49% on the P-Fin 8, and women averaged 42%. On the full 28-question index, women scored lower than men in every area except consuming.
If you’re helping adult children navigate these topics, insurance literacy is where the age gap runs widest. Starting those conversations now can close some of that distance.
How Did Americans Score on Retirement Questions?
Americans averaged 37% correct on six retirement questions in the same 2026 survey, or about two right answers out of six. Only 7% got five or six right, and 36% got one or none. Baby boomers scored highest, at 44%.
The six questions cover Social Security benefits, Medicare, long-term care, life expectancy, lifetime income, and workplace retirement savings. Only 27% knew how much of a retiree’s healthcare costs Medicare covers on average, and 28% knew the odds that a 65-year-old will need long-term care. Slightly more than half (52%) knew that annuities provide lifetime income.
Those topics sit behind decisions such as Social Security timing, Medicare enrollment windows, and portfolio withdrawal sequencing.
Retirement knowledge tracks with retirement readiness. Among workers who got four or more right, over 80% save for retirement on a regular basis, and 60% have worked out how much they need to save. Among workers who got one or none right, those shares fall to 49% and 26%. A financial skills self-test checks whether you act on what you know.
You can model your own numbers in the Boldin Planner and test decisions before you make them.
Frequently Asked Questions
What is the TIAA Institute–GFLEC Personal Finance Index?
The TIAA Institute–GFLEC Personal Finance Index, or P-Fin Index, is an annual survey of U.S. adults’ financial knowledge. It asks the same 28 questions each year across eight areas, from earning and saving to insuring and comprehending risk. In 10 years, the national average has never topped 52%. In 2026, it fell to 47%.
What is the P-Fin 8 Index?
The P-Fin 8 is a publicly available, eight-question version of the P-Fin Index, released in 2026. It uses one question from each of the index’s eight areas, chosen because together they best predict the full score. Its results correlate with the 28-question index at more than 0.9, so researchers can use it as a stand-in.
What is the average score on the P-Fin 8?
The 2026 P-Fin 8 national average was 46% correct, close to the 47% average on the full 28-question index. Six in 10 adults answered half or fewer of the questions correctly. Only 15% got seven or eight right, and baby boomers scored highest of any generation at 52%.
Which domain has the lowest correct-answer rate on this financial literacy quiz?
Insurance produced the lowest score on the P-Fin 8, at 27% correct. Nearly half of respondents picked the wrong type of coverage for the person described. On the full 28-question index, comprehending risk is the lowest-scoring domain, at 36%. Both sit well below the national averages.
Why do financial literacy gaps carry more weight in retirement?
Retirement ends the salary that would otherwise absorb financial planning errors. You can withdraw a Social Security application only within 12 months of filing. Miss your Medicare Part B signup window, and you may pay a late penalty for as long as you have Part B. Mistakes like these can shape retirement income for decades.
